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Tariff Changes and De Minimis Restrictions Disrupt Small Package Imports

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Tariff Changes and De Minimis Restrictions Disrupt Small Package Imports

The recent increase in tariffs on Chinese goods, coupled with new restrictions on de minimis shipments under Section 321, has created significant challenges for importers and logistics providers alike. What was once a streamlined process for small package imports has become a complex logistical puzzle.

Read also: How Shippers can Respond to Fast-Changing Trade and Tariff Policy Changes

Businesses that previously relied on a predictable, expedited shipping model must now break down larger shipments into multiple informal entries under the $2,500 threshold, a process that is proving nearly impossible for many.

Delays, increased costs, and compliance hurdles are creating ripple effects across supply chains, leaving businesses scrambling for alternatives to avoid major disruptions.

For companies that move high volumes of small package imports, these regulatory shifts underscore the need for agility in both operations and compliance. Businesses relying on manual processes are finding themselves at a disadvantage, struggling to meet new requirements while maintaining delivery timelines.

Meanwhile, those equipped with advanced customs compliance technology have a massive competitive advantage, enabling them to quickly adapt, minimize disruption, and keep cargo moving.

One example is the ability to automatically convert Type 86 Entries into Informal or Formal Entries as needed. Instead of manually recalculating and adjusting thousands of shipments, customs brokers and importers leveraging the right technology can process these changes seamlessly, ensuring compliance while avoiding costly delays. In an industry where reliability is paramount, customers won’t soon forget which partners were able to maintain smooth operations amid uncertainty.

As trade policies continue to shift, the ability to respond quickly and efficiently will separate industry leaders from those left playing catch-up. For logistics providers, importers, and supply chain stakeholders, staying ahead means investing in solutions that not only support day-to-day efficiency but also provide the flexibility to navigate an increasingly complex global trade environment.

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Logistics Technology Trends to Watch in 2025

As we look toward 2025, one thing is clear: the supply chain volatility of recent years isn’t going anywhere. The continued need for adaptable, resilient strategies will remain critical for success.

Read also: Revolutionizing Global Logistics: Navigating the Future with Technology, E-commerce, and Strategic Outsourcing

How will logistics leaders leverage technology to improve global freight networks, anticipate disruptions, navigate new trade policies, and boost reliability in an increasingly turbulent supply chain environment? Here are trends that will advance today’s digital logistics operations.

Automation and predictive analytics

Continuing to integrate global logistics and supply chain systems will revolutionize operational performance, strategic planning, and efficiency. Additionally, by connecting real-time data, predictive analytics, and data insights, users will accelerate resiliency, response times, and adaptability, enabling companies to tackle challenges quickly and streamline operations.

Data-driven decision making

Access to end-to-end logistics data insights is essential for making informed decisions in a dynamic environment. A business intelligence reporting solution enables businesses to quickly access data insights via a dashboard display with customized reporting for the user, providing a fast and easy way to glean actionable insights for expert decisions. 

For example, visibility systems offer real-time tracking data to enable exception management. They provide parties to a shipment with timely data that can be acted on when exceptions occur. Users can proactively resolve issues, increasing logistics service performance and peace of mind.

Artificial intelligence

AI (Artificial intelligence) will continue to play a transformative role in logistics. Its evolution will expedite the processing of vast amounts of freight information to streamline data and document processing. 

AI can quickly extract data from raw documents, including those in non-standardized formats, and organize it for use in various logistics processes, such as customs compliance entries. 

As an example, consider the ocean carrier contract, which is a long, multi-page document that outlines freight rates for container shipping transactions. Manually managing these contracts is a tedious and time-consuming job. AI is currently being used to process these contracts, reducing manual processing to enable a much faster, less cumbersome process. People continue to play a key role in validating categorized rate data, allowing them to correct any inaccurate information that AI got wrong, but the overall process is drastically accelerated. Plus, the AI learns from the corrections and applies them automatically to future contract processing. With AI for carrier contracts, the total handling time is reduced by 75%, and oftentimes even more.

In addition, AI will enhance predictive accuracy and adaptability in areas like route optimization, vendor financial statements, invoice processing, entry summaries, packing lists, and demand forecasting, driving smarter decision-making and operational excellence.

AI-powered document automation will increasingly drive massive time savings by reducing time-consuming manual processing, preventing errors, and boosting efficiency. 

With AI, the human component will NOT be eliminated. As we saw with carrier contracts, human verification is a key aspect of effective AI solutions as people serve to oversee, guide, and validate the outputs of AI systems. People work faster, better, and accomplish more when working with AI solutions.

By combining the power of human expertise with artificial intelligence, logistics service providers can enhance the accuracy, reliability, and relevance of AI-generated results, completely revolutionizing their operations and unlocking new opportunities.

Indispensable cybersecurity

Addressing cybersecurity threats is more crucial than ever. The constant risk of scams, spam, and cyber-attacks requires a secure network for global shipping participants. 

Logistics companies will focus on robust cloud security protocols, multi-factor authentication, and end-to-end encryption to protect sensitive data and prevent cyberattacks. Other forms of digital communication, such as email, are much less secure due to the risk of data breaches and the possibility that the data can be easily misused.

Enhanced customer experience

Technology empowers logistics service providers to deliver exceptional customer experiences by providing transparency, responsiveness, and personalized solutions.

In today’s digital-first world, shippers demand a seamless experience. Digital freight platforms address this need by offering the connectivity, real-time data, and collaboration needed to ensure customer expectations are met and supply chains remain efficient. By unifying systems, global shipping flows are simplified due to reduced operational redundancies, less integration complexity, and enhanced interoperability.

In 2025, modern, connected, and secure logistics platforms, such as the Magaya Digital Freight Platform, will be increasingly essential for navigating uncertainties, disruptions, and shifting market dynamics. With seamless global connectivity, networks will enable global shipping industry partners to communicate efficiently, enhance data-based decision-making, and offer customers a modern, high-visibility experience. This technology lays the foundation for resilient, agile logistics networks and supply chains that drive bottom-line growth.

Navigating the future of logistics requires both foresight and adaptability. These trends shaping 2025 signal a transformative shift as businesses increasingly automate processes. This evolution will not only strengthen supply chain and logistics resilience but also enhance customer satisfaction and simplify the ease of doing business for all parties to a shipment. 

As we enter the new year, it’s clear that those who embrace these advancements will be best positioned to drive success and stay ahead of the curve in a rapidly changing industry.

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Building a Seamless Logistics Ecosystem: The Power of API Integration

An effective logistics ecosystem requires an interconnected digital framework which brings together the various logistics processes and transactions involved with a global shipment. In today’s competitive and challenging global shipping environment establishing an efficient automated work flow is key to service performance, data accuracy, and the best customer experience.

Read also: Enhance Accuracy in Logistics Demand Forecasting With AI

From freight rates and bookings to documentation and billing, connecting functional systems with API application programming interface) integrations allows services and products to communicate with one another and harness one another’s data and capability. This helps reduce manual data entry, offers faster access to data, streamlines data flows, and improves collaboration and data quality. 

How it works

It’s critical for all partners to a shipment to know, in as close to real-time as possible, that a shipment has stalled at a marine terminal or warehouse, or other point in the logistics network. When these exceptions occur, the impact is felt up and down the logistics chain. For example, a drayage provider might need to be alerted to the delay and a container pick-up rescheduled. Or, a retailer would need to be made aware of a late delivery of a key shipment of shoes that go on sale in the next few days.

Another example of an API integration that drives significant value is real-time shipment tracking. A logistics platform could use APIs to pull GPS data from ships, trucks, planes, and warehouse and transportation management systems to access the exact location and status of cargo in real time. The GPS data would provide shipment status milestones, such as ETAs (estimated times of arrival), and determine any disruptions to the freight in transit. Logistics providers and their customers would be able to see shipments in real-time and if they’re progressing as planned.

Magaya, a provider of logistics and supply chain automation software and the Digital Freight Platform, developed its Open API as a collection of web services that can be used with all popular programming languages, enabling users to unify their tech stack, and put all logistics and supply chain stakeholders on the same page.

APIs are critical to the global logistics ecosystem, driving efficiency, transparency, and innovation. They enable real-time data exchange, automate processes, enhance customer experiences, and facilitate the integration of emerging technologies, ultimately leading to a more resilient and responsive supply chain.